Sweatamber Steel Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2012

1. We have audited attached Balance Sheet of SWETAMBER STEEL LIMITED as at 31st March, 2012 and also Profit & Loss A/c of the Company for the year ended on that date annexed thereto. These financial Statements are the responsibility of Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, Evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principals used and significant estimates made by the management, as Well as evaluating the overall financial statement presentation. We believe that our audit provides reasonable basis for our opinion.

3.As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

4. Further to our comments in the Annexure referred to above and notes forming part of the Accounts, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion proper books of accounts as required by law have been kept by the Company, so far as it appears from our examination of books.

c) The Balance Sheet and Profit & Loss A/c dealt with by this report are in agreement with the books of accounts of the Company.

d) In our opinion the Balance Sheet and the Profit & Loss Account comply with the accounting standards referred to in Section 211 (3C) of the Companies Act 1956.

e) On the basis of written representation received from the Directors as on 31st March,2012 and taken on record by the board of Director, We report that none of the directors is disqualified as on 31st March,2012, from being appointed as a Director of the company in terms of Clause (g) of Sub Section (1) of Section 274 the Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the notes thereon give the information required by the Companies Act, 1956 in the manner so required and gives a true and fair view:

i) In the case of Balance Sheet of the state of affairs of the Company as at 31st March, 2012 and;

ii) In the case of Profit & Loss A/c of the Loss for the year ended on 31st March, 2012.

ANNEXURE TO THE AUDITORS REPORT FOR THE YEAR ENDED ON 31st MARCH, 2012 Referred to in our Audit Report of even date:

1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) Fixed assets have been physically verified by the management at reasonable intervals; No material discrepancies were noticed on such verification as informed by the management.

(c) No substantial part of fixed assets has been disposed off during the year, and it has not affected the going concern.

2. (a) Physical verification of inventories is conducted by the management at reasonable intervals.

(b) The company has followed reasonable and adequate procedure for physical verification of inventories.

(c) Material discrepancies if any noticed on physical verification are properly dealt with in the books of accounts. No change in inventory.

3. The company has not taken any secured loans but unsecured loans maximum outstanding during the year of Rs. 43.12 lac and at the end of the year it was Rs. 14.93 lac from companies or firms or other parties covered in the register maintained u/s 301 of the companies Act- 1956.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to finished goods, equipment and other assets and with regard to the sale of goods.

5. (a) According to the information and explanation given to us, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the companies Act 1956 have been entered in the register required to be maintained under that section.

(b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 are made at price which are reasonable having regard to prevailing market prices at the relevant time.

6. In our opinion and according to the information and explanation given by the company has not accepted any deposits in pursuance to provisions of section 58A and 58AA of the Act.

7. Internal Audit is applicable to the company. However, the company has no Internal Audit System commensurate with the size and nature of its business.

8. The company has not maintained cost records required under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956.

9. (a) The company is regular in depositing with appropriate authorities undisputed statutory dues applicable to it.

(b) According to the information and explanations given to us, There is as an disputed matter pending before the High court in respect of Income tax which amounts to Rs. 29.00 Lacs (Appx.) as at 31st March, 2012 and in others there is no undisputed amounts payable in respect of wealth tax, services tax, sales tax, custom duty, excise duty and cess were in arrears, as at 31st March, 2012 for a period of more than six months from the date they became payable.

10. Company has incurred accumulated losses of Rs. 149.70 lacs at the end of financial year and in the immediately preceding Financial Year the accumulated losses is of Rs. 139.50 ; however it has incurred Cash losses of Rs. 10.20 lacs for the financial year ended on 31st March 2012 and in immediately preceding Financial Year it is of Rs. 8.17 Lacs.

11. In our opinion, Company has taken a Financial Loan from Bank (The Baroda Peoples Co-op Bank Ltd) of Rs. 7.79 Lacs and there is no repayment of Loan during the Financial Year ended on 31st March 2012

12. In our opinion Company has not advanced or granted loans/ advances against security by way pledge of shares, debentures and other securities.

13. In our opinion and according to information and explanations given to us the company is not chit fund or a nidhi or mutual benefit fund/society. Accordingly, the provisions of clause 4(xiii) of the Order are not applicable to the company.

14. According to information and explanations given to us the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, provisions of clause 4(xiv) of the Order are not applicable to the company.

15. On the basis of records examined by us and information provided by the management, we are of the opinion that the company has not given guarantees for loans taken by others from banks or financial institutions.

16. In our opinion, the loans raised by the company during the year has been applied for the purpose for which it was raised.

17. Based on an overall examination of the Balance Sheet of the company and a review of the consolidated fund flow statement for the year, we report that no funds raised on short-term basis have been used for long-term investment.

18. The company has not made any preferential allotment of shares to parties and companies covered in the register maintained u/s 301 of the Act, during the year.

19. The company has not issued any debentures during the year. Therefore provisions of clause 4(xix) of the Order are not applicable to the company.

20. The company has not raised money from the public during the year under audit.

21. During the course of our examination and records of the company, carried in accordance, with the generally accepted auditing practices in India, and According to the information and explanation given to us, We have neither come across any instance of fraud on or by the company, noticed or reported during the year nor have we been informed of such case by the management.

PLACE : AHMEDABAD FOR RAKSHIT M. SHAH & CO.

DATE : 11.08.2012 CHARTERED ACCOUNTANTS

SD/- RAKSHIT M. SHAH

(PROPRIETOR)

M.No. 123368

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Mar 31, 2011

We have audited attached Balance Sheet of SWEATAMBER STEEL LIMITED as at 31st March, 2011 and also Profit & Loss A/c of the Company for the year ended on that date annexed thereto. These financial Statement are the responsibility of Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

1. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, Evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as Well as evaluating the overall financial statement presentation. We believe that our audit provides reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 is not Applicable to the Company. Further to our comments in the Annexure referred to above and notes forming part of the Accounts, we report that

2. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

3. In our opinion proper books of accounts as required by law have been kept by the Company, so far as it appears from our examination of books.

4. The Balance Sheet and Profit & Loss A/c dealt with by this report are in agreement with the books of accounts of the Company.

5. In our opinion the Balance Sheet and the Profit & Loss Account comply with the accounting standards referred to in Section 211 (3C) of the Companies Act 1956.

6. On the basis of written representation from the Directors of the company, none of the Director is disqualified as on 31st March, 2011, none of the directors is disqualified from being appointed as a Director of the company in terms of Section 274 (1)(g) of the Companies Act, 1956.

7. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the notes thereon give the information required by the Companies Act, 1956 in the manner so required and gives a true and fair view:

a) In the case of Balance Sheet of the state of affairs of the Company as at 31st March, 2011 and;

b) In the case of Profit & Loss A/c of the Profit for the year ended on 31st March, 2011.

ANNEXURE TO THE AUDITORS REPORT FOR THE YEAR ENDED ON 31ST MARCH, 2011

i) The Company has maintained proper records to show full particulars including quantitative details and situation of fixed assets.

ii) The fixed assets have been physically verified by the management at reasonable intervals during the year and no material discrepancies were noticed on such verification as compared with the available records.

iii) None of the Fixed Assets of the company have been disposed off during the year .

iv) The stock of finished goods, and raw materials have been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

v) The procedure followed by the management for physical verification of stocks is reasonable and adequate in relation to the size of the company and the nature of its business.

vi) On our basis of examination of stock records, we are of the opinion that the record of stocks is fair and proper in accordance with the normally accepted accounting principle and no material discrepancies were noticed on physical verification.

vii) There is no loans, secured and unsecured, taken by the company to/from companies, firm or other parties covered in the register maintained u/s. 301 of the Co. Act, 1956.

viii) Interest free Loans and Advances in the nature of loans have been given to employees and other parties who were generally regular in repaying the principal as stipulated. Where there is delay in repayment, the company has taken reasonable steps to recover the same.

ix) In our opinion and according to information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for financial activities.

x) According to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Act that need to be entered into the register maintained under section 301 have been so entered.

xi) In our opinion and according to the information and explanations given to us, the provisions of section 58-A of the Companies Act, 1956 and Companies (acceptance of deposits) Rules, 1957 are not applicable as the company has not accepted and deposits from the public.

xii) The company does not have any formal system of internal audit. However in our opinion and according to information and explanations given to us, the internal control procedures are adequate. Considering the size and nature of business of the Company.

xiii) The Provisions of section 209(1)(d) of the Companies Act, 1956 regarding the maintenance of cost records are not applicable to the company.

xiv) As informed to us the provision of Provident Fund Act, Employees State Insurance Act provisions of investor education and protection fund, customs duty, excise duty and cess are not applicable to the Company during the year under review.

(xv) According to the information and explanations given to us and based on the generally accepted audit procedures carried out by us no personal expenses of employees or directors have been charged to Revenue Account, other than those payable under contractual obligations or in accordance with generally accepted business practice.

(xvi) The Company has accumulated losses at the end of the financial year and it has incurred losses in the current and immediately preceding financial year.

(xvii) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to financial institution, banks or debenture holders.

(xviii) According to the information and explanations given to us and based on the documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xix) The provisions of any special statute applicable to Chit Funds, Nidhi, or Mutual Benefit Society/fund do not apply to the Company. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor's Report) Order, 2003 (as amended) are not applicable to the Company.

(xx) The Shares and other securities have been held by the Company, in its own name as explained to us and proper records in respect thereof have been maintained.

(xxi) According to the information and explanation given to us, the Company has not given counter guarantee for loans taken by anybody.

(xxii) According to the information and explanations given to us and on an overall examination of the balance sheet and cash flow statement of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

(xxiii) The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained u/s 301 of the Co. Act, 1956.

(xxiv) The Company did not have any outstanding secured debentures during the year.

(xxv) The Company has not raised any money through a public issue during the year under review.

PLACE : AHMEDABAD FOR RAJESH D. SHAH & ASSOCIATES

DATE : 05.09.2011 CHARTERED ACCOUNTANTS

SD/-

RAJESH D. SHAH

(PROPRIETOR)

M.No. 121298